Successful implementation of Financial inclusion can create a new dimension in employment generation of rural areas, empowerment of women, ensure their livelihood and income leading to poverty alleviation. If the livelihood sustains the income would persist leading to sustainable poverty alleviation.
We need to emphasize on the following issues to explore financial inclusion:
- To expedite the process of account opening and bringing unbanked people under the financial inclusion acceptance of digital documentation is essential. Lake of policy for accepting digital documentation instead of manual.
- Central and secured infrastructure is a must; central bank can guide the banks on this issue. e-KYC through block chain technology may be used for central control. Central bank can play the role of main custodian of e-KYC depository where verified e-KYC will be kept and all the banks and NBFIs will be user.
For secured infrastructure local cloud environment need to be developed under supervision of central bank.
- Acceptance of using NID in all financial transactions is needed.
- Uniform KYC in short form for all banks and NBFIs like information in NID is enough to open an account.
- Micro merchant regulation is required to operate properly and minimize the ambiguity among inter operation of micro merchant transaction is needed.
- Micro Merchant banking operation can use block chain technology for security.
- In broader aspect banking database needed to maintain centrally to ensure security and safety.
- BTRC should have central cell for supporting financial inclusion initiative and services and ensure security.
- Biometric devises should be secured like ISO standard and import tax on the devises need to be waved.
- Excise duty on customer account is multiple, due to account wise application which should be on customer ID wise especially for financial inclusion.
- Banking services should not be offered by other agencies where banking services is available within the territory or demographic.
- Permission/ license of Agent Banking has redirected to the board which has make the process lengthy. License / permission process and time needs to be minimized.
- Multiple Agent Banking permission in a common area will discourage the entrepreneurship. Unfriendly competition among the bank will took place.
- Some incentives need to be offered for encouraging financial inclusion and usage from the banks under CSR.
- Government may offer some incentives for the banks who will involve in financial inclusion activities and do better
- To make sure Apps use facilities without Internet for the farmers for different services.
- Ministry of finance and ICT ministry can create separate cell for Agent Banking/Financial inclusion and usage.
The author is Muhammed Serajul Islam, FCMA. He is the CEO of Era InfoTech Limited.
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